Market segmentation is a process that divides the total market of a service or in several groups of a smaller size and that internally are presented as homogeneous. The aim of this segmentation is to know consumers a little more in depth and identify similar groups of customers with the aim of adapting the product to the characteristics demanded by the market.
The definition of a market segment refers to a large and homogeneous group of consumers who can be recognized within a market, who have similar desires and buying habits, and who will react in a similar way to the power of marketing.
With this segmentation, what any It is to know the demands of that group to which your services or articles are focused. In this way, they adapt what they offer to consumer tastes and it will also imply an important boost for the company, which will gain an advantage compared to the competition.
The concept of market segmentation is especially useful for SMEs and autonomous, since it offers them the possibility of specializing in a certain sector. Companies that decide to face market segmentation do so with the purpose of choosing a market that suits their services or products, preparing suitable marketing campaigns and building customer loyalty.
A market segment invites us to work on sectors that are broad enough for the process to be as profitable as possible, since otherwise it would not make sense for the entrepreneur to direct his efforts on a specific marketing strategy or investment.
Steps in a market segmentation
The implementation of a good Free CRM It can help you carry out a good market segmentation and then launch a marketing or communication campaign and thus maximize the results. Segmenting the market involves a series of steps that you must assess.
- Identify the different variables of segmentation.
- Describe the profiles within each segment.
- Analyze the interest and attractiveness of the segment according to the results it can provide to the company.
- Clarify the segment that will be most advantageous.
- Set the actions to apply.
- Depending on the selected segment, the tasks that help to improve the state of the company must be implemented.
Types of market segmentation
We can find different market segmentation classes, based on the parameters used to create the segments.
- Geographical segmentation: it separates the market segments by regions, cities, countries, or any other spatial concept.
- Demographic Segmentation: Segment audiences depending on demographic variables such as gender, age or income of each person.
- Psychographic Segmentation: Create segments of people based on psychological variables that focus on people's tastes and preferences.
- Segmentation by frequency of use: refers to the segments of people grouped according to the use they make of the brand or product.
- Cultural segmentation: segments are created according to the cultural model of the society in which different people live.
Know all the information about the market segmentation by companies.